Euro's Weakness Baffles Experts
As Obvious Answers Fail to Satisfy

The euro has descended to new lows against the dollar and the yen and, once again, markets are crying foul on the Old World. This time, though, the charges have trouble sticking.

As the young European currency slipped within a penny of $1 and fell even more sharply against the yen last week, analysts scratched their heads for a plausible explanation. The obvious seemed to come from abroad: Investors have bought wholeheartedly into the Japanese recovery story, and the U.S. economy continues to roar ahead. By comparison,...